Welcome, Duygu, They are both correct. She used to live in a big old house in the country. It means that she lived there some time in the past.
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RuslanaShe would live in a big old house in the country. This one is a main clause of a conditional sentence. For example, "If she had more money, she would live in a big old house in the country".You're mistaken, Lana. It can be used as the main clause of a conditional sentence as well, but here is simply a "standard" sentence where you use 'would' in